Blended families and Family Tax Benefit (FTB) 007-07040080

If a member of a couple wants to:

• change their existing blended family percentage, go to Step 2
• end the blended family assessment so that one member of the couple is paid all FTB for the family, do not update percentages. Go to Step 6
• end the blended family assessment due to separation, do not update the percentages; coding the separation will end the assessment and FTB will be paid based on any existing care arrangements. Procedure ends here

Commence initial blended family assessment

Does the family meet the definition of a blended family for FTB?

• Yes, go to Step 3
• No, the couple cannot be treated as a blended family. One member of the couple (the primary carer) will need to claim all FTB for the family. Go to Step 6

What to do if Edit E033FY appears on a current FTB customer's record (apart from new claim or when linking).

To process FTB:

• instalment claim, see Table 2, Step 4
• lump sum claim, see Table 2, Step 9

The new percentages can apply no earlier than date paid to plus one day.

If a person wants to:

• decrease their percentage, code new percentages on the Blended Families Split FTB Rate (FBSR) screen in Customer First. Record details on a DOC. Procedure ends here
• increase their percentage, confirm change with their partner. If the partner is not available to confirm, advise the customer to contact when the partner is available as the update cannot be finalised until confirmation is received from the partner

Does the partner agree to new percentage?

• Yes, code new percentages on FBSR screen in Customer First. Record details on a DOC. Procedure ends here
• No, or partner not available, record details on a DOC and advise the customer. Procedure ends here

Only appropriately trained Smart Centre staff can link a new couple when a blended family assessment applies. Send a DOC to Smart Centres FCC Processing using Fast Note - select Auto Text, use Families > Updates > Blended Family follow up with the following information:

• new partner details
• date they became partnered
• Partner Permitted to Enquire (PPE)
• estimated income, and
• agreed blended FTB percentage split (must be confirmed with both customers)

If either member of the couple is in receipt of an ISP, see Change in relationship status from single to partnered, to check if forms are required. Send a request for a MOD P in:

• Process Direct select > Request Documents
• Customer First use the Request for Information guided procedure

The MOD P - Partner Details form is completed and returned within 14 days or discuss appropriate transfer/claiming options for example, PPS-PPP, PPS-JSP.

Partner details for income support purposes will be collected using the MOD P. The MOD P will direct Income Support Payment (ISP) - FTB mutual customers to provide a new combined income estimate for Family Tax Benefit and/or Child Care Subsidy purposes online.

Unreasonable income estimates:

Staff must ensure income estimates are recorded as accurately as possible so that a person's entitlements are correctly assessed and the risk of overpayments reduced.

For Parenting Payment (PP) transfers, appropriately trained Smart Centre staff code the blend if appropriate and refer back to the service centre to finalise the benefit transfer incorporating the blended assessment within the PP benefit transfer.

The couple can choose:

• to each receive a nominated percentage of the family's total FTB, or
• for only one member of the couple to be paid all FTB for the family (this may be more beneficial, for example where one partner is going overseas and their payment will cease)

If FTB instalments are not payable to one member of the couple due to prohibition or zero entitlement years, FTB instalments are not payable to the other member of the couple.

Do both members of the couple want to receive FTB, or are both members of the couple FTB current (including CZR) when partnering?

• Yes, go to Step 4
• No, go to Step 6

Have both members of the couple provided their agreed blended FTB percentage split (must be confirmed with both customers)?

• Yes, see Table 2, Step 1
• No, go to Step 5

Make 2 genuine attempts to contact the customer and their partner to confirm the agreed blended percentage. Before calling, use Desktop Electronic Messaging Capability (DEMC) to advise the customer they will get a phone call.

If the customer and/or their partner cannot be contacted, in Customer First:

• issue a Q164 asking them to contact the agency
• in Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason: FTB
• Review Reason: OTH (Other)
• Due Date: 22 days from today’s date
• Source: INT
• Date of Receipt: today's date
• Notes: 'Q164 issued xx/xx/xxxx. Check if customer and partner have contacted. Return to OB 007-07040080 to action.'
• Keywords: FTBREV
• Workgroup: leave blank
• Position: leave blank
• Transfer To Region: leave blank
• The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action
• DOC the customer and partner records with details of:
• the need to confirm agreed blended FTB percentage split
• any other missing information required
  For example - 'blended families assessment has not been completed as both members of the couple must provide an agreed blended percentage. Confirmation with both the customer and the partner is required prior to reassessing the payments.'

If the customer and the partner have not contacted when the review becomes due, attempt to contact by phone again.

If unable to contact, in Customer First:

• cancel their FTB reason FRC (failed to reply to correspondence)
• assess any FTB claim pending as not effective (NEF), as not all required information has been provided

Procedure ends here.

The couple will need to decide who will receive FTB. That person will need to claim FTB for each child of the family for whom they do not currently receive FTB.

If their partner is FTB current, before linking the couple, in Customer First, cancel the partner's FTB by coding the children as 'TOP' (transfer out to partner) from the relationship start date on the Child Override/Claim (CHOC) screen. Record details on a DOC and finalise activity on the Assessment Results (AR) screen.

If the couple are linked and there is no shared care the Blended Family Assessment may be ended and the partner's FTB cancelled, by coding 'TOP' on the CHOC screen in Customer First for the partner only from the later DPT + 1 of both members of the couple. Record details on a DOC and finalise activity on the Assessment Results (AR) screen. Note: if a shared care assessment is currently coded on FSC/SSC (between the blended family couple) this will need to be updated prior to coding TOP on CHOC.

If a child is not linked to the record of the person who will receive the FTB, link the child via the Link Child screen (LCH), see Linking a child to a customer's record for more details.

If there is shared care for the step child of the person now receiving FTB, a problem (P24845) has been identified where shared care is not being correctly applied when a child is in the care of a parent who has transferred their FTB to their current partner (step-parent). See Table 4 in Notification and assessment of shared care arrangements for Family Tax Benefit (FTB) for coding.

Each member of a blended family must receive FTB in the same way (fortnightly or as a lump sum).

They each need to claim for their child/ren only. If a child is from a previous relationship, ideally one person should claim for that child and their partner should claim for the children from the current relationship. This will ensure that if the child from the previous relationship ceases to be a dependant, FTB is cancelled for one member of the couple and the blended family assessment ended.

Each member of the couple must be entitled to FTB. They each must have an FTB child to be able to blend their payments. From 1 July 2016, FTB Part B is not payable when their youngest child turns 13 years of age, unless the person is a grandparent carer.

For information about claiming, see Initial contact by customers claiming payments for families.

Tell the customer if they are also claiming Parental Leave Pay (PPL) for a child that FTB Part B will not be paid:

• during the PPL period, or
• on any days that they receive Flexible PPL

Backdating limit for FTB claims

An FTB claim for an additional child for a period the person received FTB instalments can only be backdated to 1 July of the preceding financial year. They would need to claim by 30 June 2022 for 2020-21.

FTB claim lodgement timeframes

Customers have until the end of the lodgement year to lodge a lump sum FTB claim, for example by 30 June 2019 for 2017-18.

From the 2012-13 financial year onwards, a customer prevented from lodging their lump sum claim by the end of the lodgement year due to special circumstances may be granted a lodgement extension. See Assessing special circumstances extensions for families unable to meet lodgement and other specific requirements for Family Tax Benefit (FTB) and Single Income Family Supplement (SIFS).

For financial years 2011-12 or earlier, customers had until the end of the extended lodgement year to lodge a lump sum claim. For example, by 30 June 2014 for the 2011-12 financial year.

Agreed blended percentage

When claiming, the couple should nominate the percentage of the family's total FTB rate each is to receive, between 1-99%. The total must equal 100%. The percentage does not need to reflect the number of children each claims.

A couple cannot be treated as a blended family for any period either member of the couple has been paid FTB.

The start date cannot be earlier than the relationship start date, or the date they were both eligible for FTB.

The assessment cannot include a period for which either person has been paid FTB.

The Resources page contains start date examples.

Does the couple wish to receive FTB instalments?

• Yes, go to Step 3
• No, transfer the request to Smart Centres FCC processing:
• use Fast Note - select Auto Text, use Families > Updates > Blended Family follow up
• procedure ends here

Each member of the couple may choose any of the FTB payment choices if they are both FTB instalment customers. They must advise their choice separately. They do not need to make the same choice.

Note: each member of a blended family must receive FTB in the same way (fortnightly or as a lump sum).

Appropriately trained Smart Centre staff, go to Step 4.

All other staff, transfer the request to Smart Centres FCC processing:

• use Fast Note - select Auto Text, use Families > Updates > Blended Family follow up
• procedure ends here

Appropriately trained Smart Centre staff only

Is either person currently receiving FTB instalments?

• Yes, reassess FTB:
• if either person has been paid FTB since the start date of their current relationship, go to Step 5
• otherwise, go to Step 6
• No, both instalment claims should be processed on the same day. If the claim of one member of the couple is assessed but cannot be finalised because their partner has not yet lodged a claim, a letter will be sent to the person who has claimed advising them that a claim from their partner is needed. Go to Step 8

Only one member of the couple has been paid FTB:

• customer who has already been paid will need to claim FTB for the additional children for the period from the later of the relationship start date and the date the child was born or entered their care up until DPT
• check the partner (non FTB customer) record. If FTB has been previously paid, check if payment can be restored. See Restoration of Family Tax Benefit (FTB). Where the partner has not previously claimed FTB, tell the customer their claim will be held and their partner (FTB current customer) must complete a claim to be paid FTB for any past periods before the blended family claim can be assessed. See Online or Assisted Customer Claim (ACC) for family assistance and Parental Leave Pay (PPL) for all claim options
• to establish the blend from DPT + 1, in Customer First code child as 'TOP' (transfer out to partner) on the Child Override/Claim (CHOC) screen in the partner's record. The person's claim can then be processed from DPT+ 1 to apply blend. An EOV (end override) line is required on the CHOC screen to enable FTB grant to the person. The EOV line overrides the TOP line previously coded
• for periods where a step parent is claiming FTB for their partner's children, the P24845 Step parent workaround may need to be applied

Both have been paid FTB since the relationship start date:

• they will need to decide who will claim and receive FTB for this period up until the later DPT of both customers and that person will need to lodge a claim for the additional children
• the children will need to be coded off the partner's record and transferred to the record of the person claiming for this period
• a qualification debt is to be manually raised for the full amount of FTB already paid to the partner for this period
• the blended family assessment starts from the later DPT + 1 of the couple
• to establish the blend from DPT + 1, in Customer First code child as 'TOP' (transfer out to partner) on the Child Override/Claim (CHOC) screen in the partner's record. The person's claim can then be processed from DPT+ 1 to apply blend. An EOV (end override) line is required on the CHOC screen to enable FTB grant to the person. The EOV line overrides the TOP line previously coded
• for periods where a step parent is claiming FTB for their partner's children, the P24845 Step parent workaround may need to be applied

Linking children

For each claim, add or link children according to who has claimed for each child:

• in Customer First -if the child has no Centrelink record, add the child on the Add Child (ACHI) screen. If the child has a Centrelink record, link the child on the Link Child (LCH) screen
• in Process Direct:
• key 'TS' in the Super Key to go to Transaction Summary
• for each claim, add or link children on the Link Summary (LS) table
• select Process according to who has claimed for each child

For customers who have claimed FTB for the partner's additional children up until DPT, those children will need to be coded off and transferred back to the partner from DPT + 1.

Ensure the Child in Customer Care (CHC) and Child Override/Claim (CHOC) screens are coded correctly for each member of the couple.

For help, see:

• Linking a child to a customer's record
• Child Override/Claim (CHOC) screen

Ensure that the family's income estimate is coded on each person's record. For help, see Updating income estimates for the current financial year.

The Blended Families Split FTB Rate (FBSR) screen must be updated in the same activity as linking the members of the couple. It should only be coded if the family is a blended family.

If the couple has not nominated a percentage, an edit will appear to suggest a percentage split based on the children linked to each person. If acceptable to the couple, these percentages must then be coded.

On the FBSR screen, in the following fields:

• Event Date, key the blended family assessment start date as worked out in Table 1, Step 3
• Cust %, key the percentage of FTB this person has chosen to receive (whole number 1 - 99)
• Partner, key the number shown for that person at the top of the screen
• Ptr %, key the percentage of FTB the partner is to receive (whole number 1 - 99). Total % of both members of the couple must equal 100%
• DOR, key the date the claim was lodged or the date the blended family assessment was requested

Any changes to the nominated percentage can only be coded via a new line with effect no earlier than DPT + 1.

Record details on a Note/DOC and complete Activity on the Assessment Results (AR) screen after checking the details are correct.

To correct a reconciliation result where the blended family percentage used does not match the latest details on the FBSR screen for the same period, the FAO Blended Percentage Override (FBPO) screen can be updated in Customer First (AS06 delegation). See Reconciliation of Family Tax Benefit.

Procedure ends here.

A person may have more than one blended family period within a financial year. Separate details must be coded for each blended family partner.

Blended family details are recorded on the FTB Lump Sum Period (FLSP) screen for the relevant financial year for each member of the couple separately:

In Customer First, in the following fields:

• From, key the blended family assessment start date as determined in Table 1, Step 3
• To, only code if the blended family assessment is to end within the financial year
• Blended Family Agreed %, key the percentage of FTB this person is to receive (whole number 1 - 99)
• Partner Name, key the number shown for that person at the top of the screen

In Process Direct:

• Expand the relevant financial year to display the Blended families details table
• select Add to open the Create Blended families details screen
• in the following fields:
• Start date, key the blended family assessment start date
• End date, only code if the blended family assessment is to end within the financial year
• Blended Family %, key the percentage of FTB this person is to receive as a whole number between 1 - 99
• Partner CRN, select the partner

When recording the lump sum claims for each member of the couple, details on each record should match. If recording maintenance income details for one person, they must also be recorded for the other.

If one member of the couple advises they are not required to lodge a tax return for a previous financial year, record non lodgement exemption. Process an activity on both records if the estimate should affect both records for blended family cases.

If the person is providing an estimate for themselves and an ex-partner, there is no need to access or code an activity on the ex-partner's record.

For more help with claims, see Processing Family Tax Benefit (FTB) lump sum claims.

Record details on a Note/DOC and finalise activity.

The claim of one member of a couple will remain pending until a claim is processed for the other member of the blended family.

If the partner has not lodged a claim by the end of the lodgement year, a letter will be sent to the member of the couple who has claimed to ask them to advise one of the following options to receive FTB:

• their nominated percentage of FTB for children on their claim
• all FTB for children on their claim
• all FTB for children on their claim plus their partner's children
• their nominated percentage of FTB for children on their claim plus their partner's children

The person would need to lodge a claim for additional children under the last 2 options.

The person who has lodged the claim that is pending may ask for a review during the financial year so they can claim all FTB for all children. The couple would no longer be able to be assessed as a blended family for that period.